Key Points
The domestic airline industry will see operating profit rise more than 20% next fiscal, after a near-tripling this fiscal, fuelled by a strong recovery in passenger traffic, ability to pass on volatile fuel prices to flyers, and reduced fluctuation in foreign exchange rates, according to CRISIL Ratings...
As per Crisil Ratings, passenger traffic will grow 1820% this fiscal and continue to grow at same rate next fiscalFuelled by strong recovery, Airlines are in better position to pass on fuel costs to flyersAnother factor supporting improvement in profitability is steady exchange rate..
Mohit Makhija, Senior Director, CRISIL Ratings, said: Next fiscal, operating profit growth is expected to be in the vicinity of 20% from Rs 18,000-20,000 crore estimated this fiscal, even as technical issues in some engine types could ground some aircraft and limit the increase in operational fleets..
